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2014 Cadillac CTS

Fixated By Europeans, GM Ensures The Third Time Is A Charm
Few things are better for consumers than competition raising the bar. And no campaign seems fiercer than the one currently underway in the midsize sport-sedan segment now that Cadillac has introduced its all-new 2014 CTS to go head-to-head against the benchmark Audi A6, BMW 5 Series and Mercedes-Benz E-Class.
While the CTS has been on the market for slightly more than a decade, up until this third-generation, Cadillac hasn't truly had the proper high-performance rear-wheel-drive architecture to build a genuine world-class fighter, both inside and out. And now that the American automaker has successfully mirrored Audi, BMW and Mercedes in overall vehicle size, engine output and cabin appointments, the first shots have been fired.

Junkyard Gem: 1981 Cadillac Eldorado with V8-6-4 engine

Skyrocketing fuel prices caused by geopolitical events in 1973 and 1979 led to gas lines, federal fuel economy requirements, and an increasing reluctance on the part of American car shoppers to buy big, thirsty Detroit luxury machines. General Motors had pulled off some amazing technological feats in the past — the small-block Chevrolet V8 engine and Hydramatic transmission being two extraordinarily successful ones — and so Cadillac's bosses figured that a combination of computer wizardry and clever mechanical engineering would give the 368-cubic-inch Cadillac V8 a cylinder-deactivation system and resulting superior fuel economy. Here's a very rare example of one of those 1981 Cadillacs, found in a California self-service wrecking yard. The idea behind the V8-6-4 was that computer-controlled solenoids would physically disengage the rocker arms for one or two cylinders on each engine bank under low-load conditions, converting the engine from a 368-cube V8 to a 276ci V6 or 184ci V4 (that's 6.0, 4.5 or 3.0 liters, respectively, for the metric-system aficionados among us). This sort of variable-displacement magic is commonplace today, but it was science-fiction stuff in 1981. An "MPG Sentinel" display on the dash would let the driver know how many cylinders were active at the moment, and the car would get Chevy Citation fuel economy with Cadillac luxury. The V8-6-4 was the standard engine in all 1981 Cadillacs (except for the Seville, which had the troubled Oldsmobile diesel engine as the base powerplant and the V8-6-4 as an option). Unfortunately, the V8-6-4 worked about as well as the Oldsmobile diesel: very poorly. Within a few years, most owners of these engines had disconnected the rocker-deactivation solenoids and just drove their cars as regular full-time V8s. This one has the snazzy "Cabriolet Roof Treatment" option, which boasted "textured elk grain" vinyl and could be had in one of 17 available colors. Front-wheel drive gave the early-1980s Eldorado plenty of interior space, despite its more proletarian Olds Toronado origins, and these velour-covered seats made for very comfortable road trips. The price tag started at $17,550, or about $51,650 in 2019 dollars. The 1981 Imperial went for $18,311, and that car was based on the same platform as the lowly Plymouth Volare. Meanwhile, A BMW 733i cost $28,945 and a new Toyota Cressida a mere $11,599. The 1981 Cadillacs were just a little too much ahead of their time, it turned out.

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.